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20 December 2004 - Korea Electric Power Corporation (Kepco), the state-owned power group has won a power plant construction order in Central China.
The deal with the government of Henan Province, involves Kepco's investing in and constructing two 600 MW coal-fired electricity generators in Jiaozhou city, the company said.
Kepco won the order two months after it was awarded a contract to build two 50 MW electricity generators for a co-generation power plant in the city.
According to Kepco, the total construction cost for the coal-powered plant is estimated at $620m, 66.6 per cent of which will be financed through loans from a Chinese
bank.
Kepco will invest $140m in the joint venture, with $70m coming from the provincial government. It will be constructed between 2005 and 2008.
As the largest shareholder, Kepco will build, own and operate the plant for 33 years, while it expects to receive 10 per cent of its future profits as dividends.
"The envisioned plant will be price competitive, even after China introduces market principles to the power industry in earnest," said the company. "We are likely to get an additional order if we successfully carry out this project."
Kepco has a cooperation agreement with China Power Investment Corporation, one of the five power companies in China.
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